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SunSirs: Crude Oil Plummets, Chinese Precious Metals Grow Significantly

April 22 2020 09:06:37     SunSirs (Linda)

On the 20th, the US WIT crude oil 2005 contract dived to a negative value due to contract expiration. On the 21st, the Brent crude oil 2006 contract dived. It fell to 23.630 at 3:13 pm, a drop of more than 7 points, and was at a recent historical bottom price.

Domestic main contract, crude oil closed at 229.2 yuan (RMB) / barrel in 2006, a decrease of 4.78%. Precious metal gold closed at 374.42 yuan / gram in 2006, an increase of 1.26%; silver in 2006 closed at 3,698 yuan / kg, an increase of 0.93%; precious metals increase in the general decline of the energy sector, and the performance was eye-catching.

List of spot precious metal price trends

According to SunSirs data, the domestic spot gold price on April 21 was 372.755 yuan / gram, compared with the average price of 370.65 yuan / gram on the 20th, an increase of 0.57%; compared with the beginning of the month (April.1), the average market price was 357.38 yuan / gram, an increase of 4.30 %. During the month (April 14), the average market price was 377.40 yuan / gram, which has reached a record high of nearly 7 years.

The historical price chart of gold is as follows:

Main factors affecting the recent price of spot precious metals

1. Crude oil plunge

Crude oil was originally a special commodity with good liquidity and strong financial attributes. At the same time, crude oil is also a leading geese in the raw material industry and can be used as a reference index for commodities. Crude oil plunge, on the one hand, shows the panic in the capital market, on the other hand, it also reflects the bearish expectations of the international real economy. The rise in risk aversion and the dominant position of gold prices may allow gold prices to benefit from a sharp fall in oil prices.

2. International Covid-19 situation

The continued epidemic situation abroad has led to a weakening of the market's optimism about economic growth, the market is expected to strengthen the central bank's policy operations, the expectation of loose stimulus is increased, the possibility of interest rate cuts is increased, and low interest rates are beneficial to the precious metals market.

Forecast

Precious metal gold prices are already at historical highs, and the subsequent wait-and-see sentiment fermentation continues, it is expected that the recent highs will be strongly volatile.

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